The Asia Pacific market
supplies tourism industry news, and is composed of nations with widely varied
characteristics– different languages, cultures, regulations, and cost dynamics
of doing business. Therefore, each market must be assessed individually. For
example, South Korea, Japan and Taiwan derive larger travel revenues from the
outbound travel market, while Singapore, New Zealand and Hong Kong derive most
travel revenue from the inbound market. Countries such as Australia benefit
from strong outbound and inbound market segments.
Asian travel styles vary
across the region, particularly as they relate to type of travel preferences.
Consider, for example, two dominant travel segments – group travel/package
tours and visiting friends/relatives (VFR).
Tourism Industry News
Group travel/package tours: Apart
from Australia, Group
Inclusive Tours (GIT), tourism
industry news and package tours are popular among
Asian travelers. Group travelers are willing to
trade flexibility for price and security. In contrast
to the U.S., Foreign Independent Travel (FIT)
constitutes a significant portion of the leisure
travel market. Asian travel
needs have forced travel agencies to offer
packages or group tours. Group
tours typically involve multi-segment,
multi-location air and hotel bookings,
and bus tours. Package tours typically
include air and hotel with an airport pick-up,
except in Japan, where packages
are an all-inclusive deal, similar to group tours
organized in the rest of Asia.
Visiting friends/relatives segment: The
Asian population, spread
across Australia, Europe and America, drives the VFR segment of the market, which is unique to Asia. VFR is a potential target segment for booking only air tickets. There are also varying levels of travel sophistication across Asia. In a benchmarking study conducted by the Tourism Board of New Zealand, Australians and Thais were found to be outgoing, while the South Koreans and Japanese are more reserved. Therefore, South Koreans and Japanese travelers tend to travel in groups and in tours, in part to surmount language barriers. The study also shows that tourists from Australia and Singapore have more travel experience and are less price sensitive compared with travelers from China, South Korea and Thailand. Popular destinations also vary across the region. In the same study, the most popular destination for Australians is Europe, and for South Koreans, it’s Japan, which reflects the diversity in travel interests and locations for tourism industry news.